Issue of Share Options

10 December 2008

                                 PipeHawk Plc                                  

                         ("PipeHawk" or the "Company")                         

                            Issue of Share Options                             

The Company announces that the board has approved the issue of 250,000 share
options to Randal MacDonnell, non-executive director, and 100,000 share options
to Richard Chignell, technical director. The options have an exercise price of
3 pence per share and are exercisable from 13 December 2011 to 12 December
2018.

Following the issue of the above, the Directors of PipeHawk will be interested
in the following options;

                          Number of options  Exercise Price     Date from which
                                                                    exercisable
                                                                               
Gordon Watt                         250,000           14.5p    10 December 2005
                                                                               
Gordon Watt                         100,000           20.0p    18 November 2006
                                                                               
Richard Chignell                    100,000           20.0p    18 November 2006
                                                                               
Richard Chignell                    100,000           13.5p    14 November 2008
                                                                               
Richard Chignell                    100,000              3p    13 December 2011
                                                                               
Robert Tallentire                    40,000           14.5p    20 December 2005
                                                                               
Robert Tallentire                     5,000           20.0p    18 November 2007
                                                                               
Robert Tallentire                   200,000           12.0p     9 December 2007
                                                                               
Robert Tallentire                   100,000           13.5p    14 November 2008
                                                                               
Randal MacDonnell                   100,000           24.0p          2 May 2009
                                                                               
Randal MacDonnell                   250,000              3p    13 December 2011

In addition, in recognition of the historic and ongoing financial support given
to the Company, PipeHawk has issued warrants over 6,000,000 shares to Gordon
Watt and warrants over 2,120,000 shares to Robert Tallentire. The warrants are
exercisable at 3 pence per share and only vest in the event that the thirty day
average middle-market closing share price of the Company's shares exceeds 10
pence. These warrants are capable of being exercised until 12 December 2018.

Given the number of warrants being granted to Mr Watt and Mr Tallentire, the
grants are deemed to be related party transactions under the AIM Rules. The
directors of PipeHawk, other than Mr Watt and Mr Tallentire who are interested
in the transaction (the "Independent Directors"), having consulted with John
East & Partners Limited, consider the terms of the transactions to be fair and
reasonable insofar as the shareholders of the Company are concerned. In
advising the Independent Directors, John East & Partners Limited has relied
upon their commercial assessment.

PipeHawk Plc                                                       01420 590990
                                                                               
Gordon Watt (Chairman)                                                         
                                                                               
John East & Partners Limited                                      020 7628 2200
                                                                               
Simon Clements